Transition payment

Transition payment
From 1 July 2015, you will receive a financial compensation in the event of dismissal, the so-called transition payment. A condition for eligibility for this compensation is that you have been employed for 2 years or more. It is not important whether you have had a permanent contract or fixed-term contracts. The transition payment is intended, for example, to retrain you or to bridge a short period between the current and another job.

The amount of the transition payment if you are dismissed is determined on the basis of 2 components: your monthly salary and the number of years of service. The compensation is a maximum of one gross annual salary or a maximum of € 75,000 gross. As of 1 January 2016, the maximum remuneration has been increased to € 76,000 gross due to indexation.

No right to a transition payment
In the following cases, you are not entitled to a transition payment:

• you have been employed for less than 2 years;
• you have been dismissed by seriously culpable acts or omissions by yourself;
• at the time of your dismissal, you are not yet 18 years old and you have not worked more than 12 hours per week on average;
• you have been dismissed because you have reached the AOW pension age or other pensionable age;
• your employer is bankrupt, has a deferment of payment or the debt rescheduling scheme for natural persons applies to the employer;
• your COLLECTIVE LABOUR AGREEMENT includes an equivalent provision for a transition payment;
• if you have entered into a subsequent temporary contract before the (by operation of law) termination of a temporary contract. The condition is that the new contract starts after a maximum of 6 months after the end of the previous contract (and can be terminated prematurely). Of course, it is possible that there are exceptions to the above situations because there is a special provision.

Serious culpability of the employer
If your dismissal is seriously attributable to your employer, the subdistrict court may award additional compensation on top of the transition payment. Have you been employed by your employer for less than 2 years? Then you are not entitled to a transition payment in the event of dismissal, but it is possible to claim the additional compensation.

Termination of employment contract
There are two possibilities to terminate the employment contract prematurely, namely a termination or a dissolution. If the employer wishes to terminate the employment contract, which cannot be terminated in accordance with the provisions of the employment contract, the employer must submit a request to the UWV. The UWV will then determine whether the termination is lawful and will take effect. If the employer wants to dissolve the employment contract, he will have to submit a request to the subdistrict court. A contract that has a certain period of time and in which an end date is mentioned or not extended, will end by operation of law. For this, permission does not have to be requested from the UWV or the subdistrict court.

The role of AGA Lawyers
A lawyer of AGA Lawyers offers assistance in most cases within employment law. In the event of a conflict regarding employment law, an expert lawyer is at your side. Together with you, the lawyer determines the right approach and ensures the best possible solution and result. Advising, mediating, litigating, negotiating or drafting legal documents, AGA lawyers arrange it for you.

Contact AGA Lawyers
The employment lawyers of AGA lawyers can do a lot for you, such as guiding you throughout the entire process. Feel free to contact one of our expert employment lawyers for a 1st free intake interview.

TELEPHONE: 040-8444523 (1st intake interview free of charge and without obligation) (Available Mon to Fri between 09.00h and 21.00h). We can also be reached by e-mail:
E-MAIL: info@agajuristen.nl or contact form on the right side of our website.

More information
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